Shares in the government-backed Indian stock exchange IFCI surged amid reports that the long-awaited National Stock Exchange IPO is nearing regulatory approval, potentially marking India’s largest ever listing.
Shares in the government-backed Indian stock exchange IFCI climbed sharply as investors bet that the long-awaited initial public offering of the National Stock Exchange of India is moving closer to regulatory approval.
The rally came after reports that the Securities and Exchange Board of India may be nearing sign-off on the exchange’s draft offer documents. Tuhin Kanta Pandey, the regulator’s chairman, has said SEBI is close to approving the National Stock Exchange’s draft red herring prospectus, a key step before the listing process can proceed.
The exchange filed its draft prospectus with SEBI in June. The planned share sale is expected to be entirely secondary, meaning existing shareholders would sell stock rather than the company raising fresh capital. Reports cited by Business Standard, The Economic Times and Moneycontrol say the offer could involve up to 148.9 million shares, or about 6% of NSE’s paid-up equity capital, with the exchange marketing shares at between ₹2,000 and ₹2,100 each.
That pricing would imply a valuation of as much as ₹5.26 lakh crore, or roughly $55 billion, according to the reports, which would make the deal India’s biggest IPO on record. Reuters has reported that the exchange could file an updated prospectus after receiving regulatory approval, with reports also pointing to a possible price band announcement on September 11 and a targeted listing date of September 25, subject to the rest of the offering process being completed.
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